The dominance of Japanese car manufacturers in the Philippine auto industry remains firmly in place, even as Chinese counterparts aggressively push the adoption of fully electric vehicles (EVs). While the past three years have seen a significant influx of Chinese EVs, driven by aggressive pricing and extended range technologies, local consumer preference continues to favor the Japanese alternative: the hybrid system.
Japanese carmakers, whose brands have commanded the local market for decades, have largely resisted the move to full EVs. Instead, they champion the hybrid system, arguing that a full EV requires energy expenditure in generating the electricity to power it, positioning the gas-and-battery hybrid as a more immediate and practical alternative for the Philippine market.
This stance has resulted in a flood of new hybrid models, which are now competing head-on with Chinese-led full EV offerings. Recent data from local car dealers and banks suggests that the Japanese strategy is prevailing, with more consumers opting for hybrid vehicles. Although the Internal Combustion Engine (ICE) still accounts for roughly 95 percent of consumer purchases, hybrids are steadily capturing market share.
This consumer preference for hybrids has prompted a shift among Chinese carmakers, who are now beginning to introduce their own hybrid vehicles. This suggests a growing recognition that the local market, long dominated by Japanese brands, cannot be easily rushed into a full electric transition.
Further underlining the shifting sentiment, the recent total divestment by Warren Buffett’s Berkshire Hathaway from a major Chinese electric vehicle manufacturer—a company often described as the number one Chinese carmaker—has raised questions. The move by the “Oracle of Omaha” suggests broader market signals that may yet influence the future direction of the global EV race.
